European Union retaliatory tariffs on United States products to come into effect on Friday

Ann Santiago
June 23, 2018

Taking aim at criticism Foxconn over-works its employees to meet soaring demand before the annual holiday shopping season, Terry Gou told shareholders his workers actually want to work more hours and that forcing them to put in less time reduces their income.

The trade row between the E-U and the United States is in its full force as the European Commission says it will begin charging 25 percent import duties on a range of American products. Amazon said an audit of the facility uncovered "issues of concern" about the use of overtime and contract workers, and the company has asked for changes.

Big U.S. manufacturers and automakers were also under pressure after Germany's Daimler cut its 2018 profit forecast and BMW said it was looking at "strategic options" due to the Sino-U.S. trade war. -Chinese tensions that threaten to up-end the global supply chain.

Without mentioning the Trump administration, the Chinese president condemned "Cold War mentalities and zero sum games" where exporting countries are seen as the only winners of trade exchanges.

According to a report from the Wall Street Journal, the USA ambassador to Germany has been in talks with German auto makers during which the idea was pitched to end vehicle tariffs between the US and the European Union.

Foxconn Chairman Terry Gou would rather manufacture under USA law than Chinese regulations. The CEO also repeated a pledge to employ robots to replace 80 percent of workers in coming years, as one potential solution.

"The U.S. has the upper hand over China in technology, defense and worldwide influence, and therefore the country will continue to have a strategic initiative over Beijing for the foreseeable future", it said.

A staff member walks past U.S. and Chinese flags placed for a joint news conference by U.S. Secretary of State Mike Pompeo and Chinese Foreign Minister Wang Yi at the Great Hall of the People in Beijing, China June 14, 2018.

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